Telecoms.com periodically invites expert third parties to discuss
the biggest challenges facing the telecoms industry today. In this
post, Gary Messiana, CEO of Nominum, looks to demystify digital transformation and how DNS can help end the paradox.
In recent years, the incredible increase in demand for online
connectivity, fueled by the mobile internet boom, has created an
overwhelming challenge for communication service providers (CSPs),
resulting in a market situation we call the “digital transformation
paradox.” While the digital economy has flourished on the back of their
networks,
CSPs have been forced to keep pace by investing significant amounts of
money in infrastructure. Such financial burdens have made it nearly
impossible to commit innovation and development resources to creating
higher-value digital services to thwart competition from over-the-top
(OTT) players.
Herein lies the paradox: CSPs created the very infrastructure that
enabled a thriving digital economy, but, through no fault of their own,
have not reaped their fair share of the rewards. They are now turning
the tide and moving up the digital transformation curve—a representation
of the key steps to achieving digital transformation.
With the supporting infrastructure in place and capacity and cost
efficiencies paying off, CSPs are ready to take part in the digital
transformation imperative by gaining a holistic view of the subscriber
and delivering personalized subscriber services. The number one
challenge for CSPs in achieving this integrated customer view is to
cost-effectively unify the multiple organizational functions needed to
do so. Delivering these personalized services in a cost-effective,
scalable and reliable way, while bound by legacy systems, is no easy
task. Compounding the problem is the fact that the technology choices
for uniting functional silos of people, systems and the functions they
perform along this digital transformation curve are limited and
prohibitively expensive. Many CSPs are looking to network virtualization
to further reduce costs but this approach does not solve the
fundamental issue of lack of cohesion between the network, security,
customer service, sales and marketing teams that have been tasked with
digital transformation imperatives.
Given this scenario, how can CSPs end the digital transformation
paradox and become significant competitors to OTT brands that have been
using their
networks to entice subscribers away—and in some cases even building out their own faster and less costly
networks? It’s counter-intuitive but the answer is
not
investing in new, overly complex subscriber-facing applications from
multiple providers. This exacerbates the problem with respect to delayed
time-to-value, lack of employee cohesion and increased subscriber
confusion. The fastest, most cost-effective way to successfully end the
paradox is to look for greater simplicity by finding the lowest common
denominator to unify the systems, functions and people CSPs need to
deliver an exceptional and personalized subscriber experience. The
answer is found in an asset that already exists in every single CSP
network today. The answer is
DNS—the fundamental building block of the internet.
DNS: The Central Nervous System of all IP Networks
Why is
DNS
an ideal technology to power the digital transformation shift? While
often overlooked as simply being the “phone book” of the internet,
DNS has moved beyond the realm of passive internet look-up functionality and is now at the heart of digital transformation. When
DNS
is leveraged as an active, intelligent resource, it both synchronizes
business functions and efficiently delivers premium services that
increase subscriber value. An elegant and robust technology,
DNS has the ability to deliver innovative, personalized services from end-to-end across provider
networks. And, because it already exists in CSP
networks,
DNS is easily leveraged without extensive cost or complexity.
While many existing suppliers to the CSP segment have recognized
these challenges, the solutions they offer are naturally biased toward
their position in the physical network. The higher up the stack, the
more limited the breadth of their offers and the greater the potential
for point solutions to operate in silos. This is exactly what CSPs must
reverse to accelerate up the digital transformation curve. Conversely,
the lower a supplier’s physical position in the network, the broader and
more extensible their offerings can be—an essential concept to ending
the paradox.
In our conversations with leading CSPs around the world, top-of-mind
issues include overcoming escalating competitive pressures, enhancing
subscribers’ ever-increasing digital lifestyles and growing revenue, all
while delivering new services and up-selling existing offers.
Progressive CSPs now recognize that in order to meet these objectives,
they need to sync digital service capabilities with people, processes
and systems across the entire business, not just at points along the
digital transformation curve. This means bringing marketing, customer
service, finance, legal and every other department that has a customer
touchpoint along the curve together with the more traditional network
and security teams. The days of keeping these groups physically and
functionally separated are over. Given its position in the network,
DNS
plays the perfect role in unifying these teams with efficiency and
cost-effectiveness, while supporting the digital lifestyle their
subscribers demand.
Extensible DNS: A Platform for Digital, Value-Added Services
Since
DNS connects
IP
addresses with application and service requests, it is now being
leveraged across many CSP organisations to create greater subscriber
value. It is used to secure the network, protect subscribers, create
high-value, premium offers like parental controls, and enable
interactive communications that reach 100% of subscribers in a timely
and convenient manner.
Industry experts agree that digital transformation requires a more
flexible, extensible IT architecture to speed time-to-market of new
product and service innovations. A key aspect of this approach is
utilizing existing IT systems and complementing them with lightweight,
agile platforms that support simplified digital offers and experiences.
When properly leveraged,
DNS
is a high-performance service enabler that meets CSP requirements for
flexibility and scalability, while accelerating the delivery of
subscriber-centric services that create new streams of revenue and grow
market share.
Sue Rudd, director for Strategy Analytics, published a
white paper
titled “Accelerating Digital Transformation for Communication Service
Providers.” In it, she describes four areas that are essential for
digital transformation:
- Service providers and subscribers gain real-time control over services. For example, families set filters that are activated instantly to match their content preferences.
- Integrated IP service management provides simplified management of one platform with unified interfaces for monitoring and provisioning.
- Converged solutions ensure subscribers receive the same experience regardless of the network or device they are currently using—whether LTE/cellular, Wi-Fi, cable, DSL or fiber; or smartphone, tablet, e-reader, laptop or PC.
- Personalized user access empowers households to create their own unique ‘view’ of the internet and customize settings for every device in the home.
DNS is at the heart of all four of these areas. The CSPs that have
put it to work are able to compete more effectively and bring new
services to market much faster than their competitors, and will
ultimately be in the best position to end the digital transformation
paradox. As with many seemingly intractable challenges, simplicity is
the right answer, although too often the last place we look.
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